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Standards For Charity Accountability

Governance

DescriptionOrganizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

LW does not meet this Standard because its board of directors does not:

Have a voting member of the board who is assigned the responsibility of serving as the treasurer. In general, the board's treasurer helps provide independent oversight of the organization's finances.

DescriptionAn organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

Description
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

LW does not meet this Standard because:

The paid chief executive officer also serves as the chair of the board of directors.

Description
No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

Description
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

DescriptionSpending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

LW does not meet this Standard because:

According to its IRS Form 990 for the fiscal year ended December 31, 2014, the organization's fund raising costs were 38% ($205,403) of related contributions, which totaled $545,017.

DescriptionAvoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

DescriptionMake available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

LW does not meet this Standard because:

The organization did not provide the BBB WGA with audited financial statements for the year ended December 31, 2014.

Description
Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

Description
Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

Fundraising & Info

Description
Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

Description
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

Description
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

LW does not meet this Standard because the organization's website, www.lukeswings.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

Description
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

LW does not meet this Standard because the privacy policy on its website, www.lukeswings.org, does not indicate:

What personal information is being collected and how it will be used.

How to contact the charity to review personal information that is collected and request corrections.

How to inform the charity that the visitor does not want his/her information shared with others.

What security measures are in place to protect personal information that is collected.

Description
Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

Description
Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.

Conclusion

Standard 1 (Oversight of Operations and Staff)Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

LW does not meet this Standard because its board of directors does not:

Have a voting member of the board who is assigned the responsibility of serving as the treasurer. In general, the board's treasurer helps provide independent oversight of the organization's finances.

Standard 3 (Frequency and Attendance of Board Meetings)An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

LW does not meet this Standard because:

The board of directors held one meeting in 2014.

Standard 4 (Compensated Board Members)
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

LW does not meet this Standard because:

The paid chief executive officer also serves as the chair of the board of directors.

The chair of the board is compensated either directly or indirectly.

Standard 7 (Board Approval of Written Report on Effectiveness)
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

LW does not meet this Standard because:

It has never completed an effectiveness assessment.

Standard 8 (Program Service Expense Ratio)Spend at least 65% of its total expenses on program activities.

LW does not meet this Standard because:

According to the its IRS Form 990 for the fiscal year ended December 31, 2014, the organization spent $288,426 or 45% of its total expenses ($636,207) on program service activities.

Standard 9 (Fund Raising Expense Ratio)Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

LW does not meet this Standard because:

According to its IRS Form 990 for the fiscal year ended December 31, 2014, the organization's fund raising costs were 38% ($205,403) of related contributions, which totaled $545,017.

Standard 11 (Financial Statements)Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

LW does not meet this Standard because:

The organization did not provide the BBB WGA with audited financial statements for the year ended December 31, 2014.

Standard 16 (Annual Report)
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

LW does not meet this Standard because:

The organization states it does not have a 2014 annual report.

Standard 17 (Web Site Disclosures)
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

LW does not meet this Standard because the organization's website, www.lukeswings.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:

A summary of program service accomplishments.

Total income.

Total program expenses.

Total fund raising expenses.

Total administrative expenses.

End of year net assets.

Electronic access to the organization’s 2014 IRS Form 990.

Standard 18 (Privacy for Written Appeals & Internet Privacy)
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

LW does not meet this Standard because the privacy policy on its website, www.lukeswings.org, does not indicate:

What personal information is being collected and how it will be used.

How to contact the charity to review personal information that is collected and request corrections.

How to inform the charity that the visitor does not want his/her information shared with others.

What security measures are in place to protect personal information that is collected.

The BBB Wise Giving Alliance requested but did not receive complete information from the organization and is unable to verify the organization's compliance with the following Standard(s) for Charity Accountability:
2

Purpose

Year, State Incorporated

2008, MD

Stated Purpose

to support service members who have been wounded in battle.

Programs

LW works to support service members wounded in battle. The organization operates three major programs. The wounded warrior transportation assistance program (WWTAP) provides complimentary airfare for injured service members and their families and friends, providing the means for the service member's loved ones to be present during the recovery process. The Special Operations Transportation Assistance Program (SOTAP) provides flights for families and loved ones of any special operator, including Army Special Forces, Naval Special Warfare, AFSSOC and MARSOC, under the Special Operations Command Care Coalition. Finally, the Hospice Transportation Assistance Program (HTAP) reunites veterans in hospice care across the country, providing two flights for loved ones of any veteran in hospice care to be together during their final days.

For the year ended December 31, 2014, Luke's Wings's program expenses were:

Fundraising

Fundraising costs were 38% of related contributions. (Related contributions, which totaled $545,017, are donations received as a result of fundraising activities.)

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on Luke's Wings's IRS Form 990 for the year ended December 31, 2014.

Source of Funds

Contributions and grants

$545,017

Other revenue

$10,435

Investment income

$5,228

Total Income

$560,680

Programs: 46%

Fundraising: 32%

Administrative: 22%

Total Income

$560,680

Program expenses

$288,426

Fundraising expenses

$205,403

Administrative expenses

$142,378

Other expenses

$0

Total expenses:

$636,207

Expenses in Excess of Income

(($75,527))

Beginning Net Assets

$627,118

Other Changes In Net Assets

$0

Ending Net Assets

$551,591

Total Liabilities

$3,489

Total Assets

$555,080

An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fundraising or promotional purposes.